Major League Soccer (MLS) Commissioner Don Garber has openly acknowledged the risks associated with the league's revenue share agreement with tech giant Apple for the MLS Season Pass. This admission came during his keynote address at the Columbia Sports Management Conference, where he delved into details about this exclusive global streaming deal.
The specifics of this minimum guarantee have not been publicly disclosed by either party. However, if subscriber numbers for MLS Season Pass exceed this undisclosed minimum, it could significantly boost Major League Soccer's revenues. Conversely, failing to meet this threshold would pose a significant challenge for MLS in its competition against top global leagues.
MLS Commissioner, Don Garber, said:
“It’s a partnership, and that’s the most different aspect of it, After we hit the minimum guarantee from Apple, we make 50 cents of every dollar. That’s the risk in this deal. I’m highly, highly confident we’ll get into that revenue share.”
With numbers growing at a rapid pace after Messi’s arrival, MLS aims to reach Premier League status
According to sources, Major League Soccer executives privately express their ambition to market their league akin to how Premier League is marketed. With its production capabilities and talent pool, it wouldn't be surprising if efforts are intensified on MLS Season Pass to elevate the league's stature.
However, there exists a stark reality check - the gap between MLS and Premier League has never been wider. For instance, in terms of media rights deals alone, a Premier League season rakes in $4.5 billion globally while Major League Soccer’s exclusive deal with Apple fetches $250 million annually for all global rights.
MLS is committed to its exclusive global deal with Apple for ten years which necessitates surpassing that minimum guarantee consistently over time. Otherwise, $250 million per season may prove insufficient especially considering that Lionel Messi – arguably one of world’s greatest soccer players – plays for Inter Miami club in MLS.
Apple offers a direct-to-consumer streaming package via MLS Season Pass which can deliver all games globally barring few exceptions. While access isn't an issue anymore thanks to technology advancements; whether consumers will subscribe in the numbers that Apple and MLS hope for, remains to be seen.
MLS Season Pass numbers are secret for everyone but hold the key to MLS’ and Apple’s current and future partnership prospect
The exact number of people watching MLS Season Pass is a closely guarded secret known only to MLS and Apple. This lack of transparency has led many potential advertisers to adopt a cautious approach towards advertising with MLS due to uncertainty about viewership numbers.
In his State of the League address, Garber clarified that their focus lies on selling subscriptions rather than sharing viewership numbers. This makes it even more crucial for MLS to hit Apple’s minimum guarantee of subscribers in order to grow its revenue. While expansion fees are a significant source of revenue for the league, if it aspires to be mentioned in the same breath as Premier League, it needs substantial improvement in its media rights revenues.
